How to Find an FHA Multifamily Lender (Step-by-Step)
Looking to finance your next multifamily property with low money down, fixed interest rates, and longer terms? An FHA multifamily loan might be the perfect fit. But how do you find the right lender who offers them?
Let’s break it down.
What Is an FHA Multifamily Loan?
FHA multifamily loans are government-backed financing options insured by the Federal Housing Administration (FHA). They’re used to acquire, refinance, or construct multifamily properties—typically 5 units or more.
They come with low down payments (as low as 3.5% for certain types), competitive fixed interest rates, and long amortization periods (up to 35 years for some programs). These loans are especially powerful for newer investors looking for stability and favorable terms.
Step 1: Know Which FHA Program You Need
There are several FHA multifamily loan programs, but here are the most common:
FHA 223(f) – For purchasing or refinancing existing multifamily properties. FHA 221(d)(4) – For ground-up construction or substantial rehabilitation. FHA 232 – For senior housing and assisted living facilities.
Knowing which program applies to your project will help you filter out lenders who specialize in that category.
Step 2: Search for HUD-Approved Lenders
Only approved lenders can offer FHA-insured multifamily loans. To find them, visit the HUD Lender List Search and select your state. Filter results to “Multifamily Accelerated Processing (MAP) Lenders.” Look for lenders with strong activity in your property type and region. These lenders have experience navigating FHA’s detailed application process.
Step 3: Research Lender Track Records
Not all FHA lenders are created equal. Here’s what to look for. Multifamily volume: Do they actively close FHA multifamily deals? Experience: Have they worked on deals similar in size and scope to yours? Reputation: Read reviews, check credentials, and ask for references. Don’t be afraid to schedule discovery calls with a few top picks.
Step 4: Get Prequalified
Once you’ve found a few strong options, ask to get prequalified. This helps you understand your potential borrowing limits, see how your project stacks up, and get feedback on deal structure and timeline. Lenders familiar with FHA programs can guide you through pre-application steps and highlight what you’ll need for final underwriting.
Final Thoughts
Finding the right FHA multifamily lender isn’t complicated—but it does require a bit of research and a solid game plan. The right lender won’t just fund your deal, they’ll be a partner in the process, helping you navigate the paperwork and close with confidence.
